Closed-end funds mainly have eight types of risks, namely, credit risk, market exposure risk, policy risk, economic cycle risk, interest rate risk, operating risk of listed companies, inflation risk and bond yield curve change risk.
Closed-end funds belong to trust funds, which means that the total amount of approved fund shares is fixed within the term of the fund contract. Fund shares can be traded on legally established stock exchanges, but fund share holders may not apply for redemption.
The relationship between open-end fund and closed-end fund: the isomorphism of open-end fund and closed-end fund has become two basic modes of fund operation. Open-end fund refers to an investment fund whose scale is not fixed, but which can issue new shares or be redeemed by investors at any time according to market supply and demand.
Extended data
The main difference between open-end funds and closed-end funds is that the latter has a long closed period and a fixed number of issues. The holder can't redeem it during the closed period and can only buy and sell it in the secondary market. Open-end funds can be redeemed, and listed open-end funds can also be bought and sold. Therefore, open-end funds have to "always be ready" for the possible redemption of their holders, and their investment style is relatively stable;
Closed-end funds do not have to worry about redemption during their existence. Everything has its good side and bad side. It is precisely because closed-end funds don't have to worry about redemption, similar to the holder lending money to the fund company for stock trading, and agreeing to pay back the money after 5 years, 10 or 20 years. I'm not sure if I'm interested
The holder cannot ask the fund company to repay in advance. Therefore, fund companies have great autonomy in this money and can even play the trick of "interest transfer". Of course, there are also well-run fund companies and fund managers, whose closed-end funds are not necessarily worse than open-end funds.